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Saturday, September 15, 2018

GateHouse: Fraud: The crime that can kill

Matthew T. Mangino

GateHouse Media

September 14, 2018

In the latest issue of The Atlantic, Rene Chun writes “The
third leading cause of workplace death ... is homicide.”

The first thing that comes to mind is the disgruntled former
employee who comes to the office and shoots the place up or a workplace romance
gone sour. Another more sinister reason for workplace homicide is the
concealment of fraud.

White-collar crime is typically financially motivated,
committed by business men and women bent on illicit financial gain.
White-collar crime was coined by sociologist Edwin Sutherland in 1939 to
describe “a crime committed by a person of respectability and high social
status in the course of his occupation”

The justice system has, for the most part, classified
white-collar criminals as non-violent, giving them lenient sentences in
“country club” prisons. White-collar criminals are often viewed as educated,
“upper-class” workers who a made poor decisions.

However, in reality white-collar criminals are already adept
at manipulation and have used deceit to exercise their criminality.
White-collar criminals often have a lot at stake and may resort to violence to
protect themselves and their “reputation” in the workplace and community.

Murder as a method of concealment is referred to as
fraud-detection homicide. Violence is used as a means to conceal fraud through
silencing the victim or witness who had detected or may be on the trail of
detecting criminality.

Chun wrote about Frank S. Perri, a lawyer who teaches
forensic accounting at DePaul University. Perri coined the term “red-collar”
crime, in a 2015 article in the International Journal of Psychological Studies.

Why would a white-collar criminal turn to murder? Perri
writes, “White-collar criminals thrive on being able to avoid detection in
order to carry out their fraud schemes; they have the ability, like a
chameleon, to adapt to a given environment.” The threat of detection turns the
white-collar to red.

Perri continues, “As the threat of detection increases, so
does the probability that the individual will rationalize murder as a solution
to his or her problems ... red-collar criminals do not reject violence as a
solution to a perceived problem, so killing is just as viable a solution as
using deceptive and manipulative characteristics to satisfy their needs.”

When one thinks of a criminal who is stealing from his
employer, and would use violence to protect his criminality, that person’s
profile might include self-centeredness, lying, lack of empathy, lack of
conscience, narcissism and the pursuit of their desires above all others in a
way that disregards the well-being others.

That is a shorthand definition of a psychopathy.

Not all psychopaths are criminals. According to Amy Morin
writing in Psychology Today, psychologists’ estimate one percent of the
population meets the criteria of psychopathy. Not surprisingly, about 15
percent of prison inmates are estimated to be psychopaths. However, three
percent of business leaders fit the profile for psychopathy as well.

Dr. Robert S. Hare is a criminal psychology researcher who
developed The Hare Psychopathy Checklist, the definitive tool in evaluating
psychopathy. Dr. Hare wrote, ”(I)t is possible to have people who are so
emotionally disconnected that they can function as if other people are objects
to be manipulated and destroyed without any concern”

As Morin points out, Psychopathy can lead to success in
business. Psychopaths have a grandiose sense of self, “When they say they can
skyrocket the company to new heights, they believe it. And they often convince
others that they’re capable and competent too.”

It may not be the major merger that a red-collar criminal
can manipulate his way through, but it may be skimming millions of dollars from
the family business. A cunning, violence prone red-collar criminal can do
considerable damage to the bottom line and the top brass.

— Matthew T. Mangino is of counsel with Luxenberg, Garbett,
Kelly & George P.C. His book The Executioner’s Toll, 2010 was released by
McFarland Publishing. You can reach him at www.mattmangino.com and follow him
on Twitter @MatthewTMangino.

About Matt

An analysis of crime and punishment from the perspective of a former prosecutor and current criminal justice practitioner.
The views expressed on this blog are solely those of the author and do not reflect the opinions or postions of any county, state or federal agency.